Supply Chain and Exports Taskforce

The Supply Chain & Exports Taskforce (SC&E) brings together industry trade associations, government and regulators to highlight and strengthen the capability of the UK oil and gas service sector.

Working to support both MER UK and the energy transition, the taskforce is focused on doing all it can to enable industry to succeed through a series of targeted priority actions.

Member Organisations

OGA Decom North Sea BEIS EEEGR EIC OGUK Scottish Enterprise UK Export Finance Department for International Trade NOF Subsea UK The Scottish Government ONE

Co-Chairs are currently John Pearson (Petrofac) and Stuart Payne (OGA)

Focus Areas (Q1 2021)

  • Stimulating Activity

    Aim:

    Ensure maximum possible work is undertaken in the UKCS to support operators and supply chain by encouraging licence commitments and creative ways of working to unlock activity.

    Work is being led by OGA with others, including OGUK leading targeted interventions

    Lookback – highlights from previous quarter:

    • Creative contracting workshop held in October 2020 attended by 22 operators, which showcased a collaborative approach to value adding projects between an operator and a Tier 1 contractor. The workshop resulted in an additional operator placing work on Pathfinder in order to engage with supply chain to develop a cost-effective approach for their upcoming project.

    Current Focus – priorities for the current quarter:

    • Well Plug & Abandonment – Ongoing engagement with 17 operators who have indicated plans to P&A wells in 2021/2022. Details of these wells are currently being updated onto pathfinder to provide supply chain with visibility of work and the opportunity to come forward with innovative approaches to execute the work in cost efficient manner.

    Links

  • Visibility of Work

    Aim:

    Getting all available work (both in oil & gas and renewables) in front of the supply chain – quickly, simply and consistently.

    The SC&E taskforce is working to improve visibility of work through a combination of the OGA’s Pathfinder and other databases from trade associations including EIC, OGUK and Subsea UK.

    Work led by OGA, EIC, OGUK and Subsea UK

     Lookback – highlights from previous quarter:

    • Engagement with operators of over 20 significant oil and gas projects to re-establish project timeline post Covid deferment. Engagement will continue into Q1 2021 with project details being updated to pathfinder.

     Current Focus – priorities for the current quarter

    • Oil & Gas Pathfinder Improvements - Complete overhaul of interface and improvement to functionality. The new updated system will provide greatly improved information on upcoming energy projects (oil & gas & renewables). Scheduled for launch March 2021
    • Engagement with 12 UK Energy transition projects with the aim to get project information into the public domain.
  • Simple, frictionless tender process

    Aim:

    Work to trial simple, fast and low-cost tender processes that deliver fair outcomes without delay and waste.

    The SC&E taskforce is targeting the tendering process – assessing why value is being lost and working to deliver targeted solutions to achieve fair outcomes in tendering.

    Work led by OGA and OGUK

     Lookback – highlights from previous quarter:

    • Meetings were held by the OGA and OGUK, Q4 2020 with the operating and supply chain community to understand issues facing the tendering process. Issues identified in the discussions will form the basis of industry workshops which will be facilitated by the OGA in Q1 2021.

    Current Focus – priorities for the current quarter:

    • A series of agile workshops focused on finding targeted solutions to the issues raised in Q4 operator and supply chain meetings will be held in late February / Early March 2021. The workshops will invite voluntary participation from the operating and supply chain community.
  • 30-day payment terms

    Aim:

    Until end 2021, all invoices within supply chain, starting with Operator are paid within 30 days. Where invoices are disputed, only the disputed amount is withheld.

    The SC&E has pulled together a working group to develop a process to enrol and monitor operators to commit to 30-day payment terms in 2021.


    Work led by the taskforce Co-Chairs and OGUK

    Lookback – highlights from previous quarter:

    • Initial work and agreement by working group to track two metrics – Invoice acceptance and Invoice payment. A system will be developed to track companies’ overall payment performance metric. (October 2020)
    • Operator and Tier 1 contractor engagement – promoting 30-day payment scheme (November 2020)
    • Data collection launch and initial payment metrics created – will be updated on a quarterly basis (December 2020)
    • More than 20 major organisations “signed-up” to participate

    Current Focus – priorities for the current quarter:

    • Increasing the number of firms taking part
    • Collecting and reporting data on a quarterly basis

 

Key Resources



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